Assets Proceeds from sale Initial margin deposit Total Liabilities and account equity Short position Account equity Total

Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 4AP
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You believe that Rose, Incorporated, stock is going to fall and you've decided to sell 900 shares short. If the current share price is $52,
construct the equity account balance sheet for this trade. Assume the initial margin is 65 percent.
Note: Do not round intermediate calculations. Input all amounts as positive values.
Assets
Proceeds from sale
Initial margin deposit
Total
Liabilities and account equity
Short position
Account equity
Total
Transcribed Image Text:You believe that Rose, Incorporated, stock is going to fall and you've decided to sell 900 shares short. If the current share price is $52, construct the equity account balance sheet for this trade. Assume the initial margin is 65 percent. Note: Do not round intermediate calculations. Input all amounts as positive values. Assets Proceeds from sale Initial margin deposit Total Liabilities and account equity Short position Account equity Total
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